Bubba buys one XYZ June 40 call for $1,000 and sells one XYZ March 40 call for $600. Subsequently, the June call is closed for $1,200 and the March call for $900. What is Bubba's net result?
A)$100 loss
B)$100 profit
C)$200 loss
D)$200 profit

Question

Quizplus · Accepted Answer

$100 profit. The long position in the June call is a $200 profit ($1,200 - $1,000). The short position in the March call is a $300 loss ($900 - $300). Combining the gain and loss results in a $100 loss.

Bubba Buys One XYZ June 40 Call for $1,000 and Sells